Taiwan's foreign ministry has pulled out of Papua New Guinea, a move that's bad for Taiwan's shrinking international standing but framed by the ministry as a stand on dignity rather than defeat.

• Taiwan is shutting down its representative office in Papua New Guinea and withdrawing all staff, after PNG unilaterally announced in July it was closing Taiwan's office there.
• Taiwan responded earlier by halting spot purchases of PNG natural gas, and the ministry says the closure is about protecting national dignity and diplomatic independence.
• The opposition KMT says this shows Taiwan's international space keeps shrinking under the ruling party, blaming worsening cross-strait relations for the shakier diplomatic footing.
• The KMT is calling on the government to stop just blaming outside pressure (China) after each setback and instead rethink its diplomatic and cross-strait strategy, pushing for a more "pragmatic diplomacy" approach.

Outlook: Expect continued pressure on Taiwan's remaining diplomatic ties as China keeps expanding its political influence in the Pacific region.